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Leona [35]
4 years ago
9

What is a FREE TRADE area?

Geography
1 answer:
kipiarov [429]4 years ago
4 0

Answer:

a group of countries that have agreed to eliminate tariffs and trade barriers

Explanation:

    Free trade area is a trade agreement made between countries whose main intention is to increase trade relations between them by eliminating tariffs and quotas on the import and export of goods and services.

    The Free Trade Area is considered one of the intermediate phases for the formation of an economic bloc.

    It is noteworthy that it is not a customs union, because there is no common trade policy between countries, not even the establishment of external tariffs valid for all.

    These agreements are governed by the WTO (World Trade Organization) or by agreements between the member countries themselves.

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